On December 31 of the current year, the following accounts were discovered in the BT21 Company's Ledger: Dr. Accounts Receivable is at P356,800; Cr. Bad Debt Allowance is for P8,760: Cr. Cash Sales is worth P913,800; and Cr. Credit Sales is worth P1,851,000. Five percent of the outstanding accounts receivable, according to analysis, won't be recovered. What amount of the allowance for bad debts will need to be adjusted on December 31?

On December 31 of the current year, the following accounts were discovered in the BT21 Company's Ledger: Dr. Accounts Receivable is at P356,800; Cr. Bad Debt Allowance is for P8,760: Cr. Cash Sales is worth P913,800; and Cr. Credit Sales is worth P1,851,000. Five percent of the outstanding accounts receivable, according to analysis, won't be recovered. What amount of the allowance for bad debts will need to be adjusted on December 31?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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